Money Bill

Question 1

Money Bill: Definition

Answer 1

A bill is a Money Bill if it contains only provisions dealing with any of the following matters:

1 Imposition, abolition, remission, alteration, or regulation of taxes.
2 Borrowing of money by the Government of India.
3 Custody of the Consolidated Fund or Contingency Fund of India and payments into or withdrawals from these funds.
4 Appropriation of money from the Consolidated Fund of India.
5 Declaration of expenditure charged on the Consolidated Fund of India.
6 Receipts of money on behalf of the Government of India (such as loans, repayments, or other financial obligations).
7 Any matter incidental to the above.

Question 2

A Bill is NOT a Money Bill if it only provides for

Answer 2

1. **The imposition of fines or penalties.
2. **The demand or payment of fees for licenses or services.
3. **The imposition, alteration, or regulation of a tax by local bodies.
   (As per Article 110 of the Constitution, these do not qualify a bill as a Money Bill.)

Question 3

Introduction of a Money Bill

Answer 3

Can only be introduced in Lok Sabha, and only by a minister on behalf of the government.
Article 117(1) requires the prior recommendation of the President for introducing a Money Bill.

Question 4

Certification by Speaker

Answer 4

The Speaker of Lok Sabha has the final authority to certify whether a bill is a Money Bill, and their decision cannot be challenged in any court.

Question 5

Rajya Sabha’s Role in Money Bill

Answer 5

Rajya Sabha cannot reject or amend a Money Bill. It can only recommend changes, which Lok Sabha may accept or reject.

Question 6

Time Limit for Rajya Sabha

Answer 6

Rajya Sabha must return a Money Bill within 14 days; otherwise, it is considered passed.

Question 7

President’s Assent for Money Bill

Answer 7

The President cannot return a Money Bill for reconsideration; they must either give assent or reject it outright.

Question 8

Effect of Lok Sabha Dissolution on Money Bill

Answer 8

A pending Money Bill lapses upon Lok Sabha’s dissolution and must be reintroduced in the new Lok Sabha.

Question 9

Difference Between Money Bill and Financial Bill

Answer 9

All Money Bills are Financial Bills, but not all Financial Bills are Money Bills. Financial Bills (Categories A & B) have a different legislative process.

Question 10

Article 109: Special Procedure for Money Bills

Answer 10

Article 109 of the Constitution lays down the special procedure for Money Bills:
\n1. A Money Bill can only be introduced in Lok Sabha.
\n2. Rajya Sabha cannot reject or amend a Money Bill; it can only recommend changes.
\n3. Rajya Sabha must return the bill within 14 days; if not, it is deemed to be passed.
\n4. Lok Sabha may accept or reject any recommendations made by Rajya Sabha.
\n5. President’s recommendation is required for introducing a Money Bill.